...to the growth of the company over the past several years. Situation Analysis Porter Airlines operates in a fiercely competitive airline industry, where competitors compete based on price, service, and comfort of passengers, and frequently engages in predatory practices to squeeze out smaller players in the market. The performance of the company depends on external environment factors, such as economic factors of oil and fare prices that will influence margins, or political factors impacting the future bridge and accessibility improvements to the city center airport. Porter’s competitive advantage is linked to the convenience of the Toronto City Center Airport, such as proximity to business core and expedited security and check-in times. Additionally, a critical success factor for Porter is to maintain the commercial exclusivity on the airport, to take advantage of cost savings as a result of being the owner, tenant, and operator. Competitive advantage is also a result of operating a single class of aircraft that has significant cost and operational efficiencies. Alternatives and Recommendation ------------------------------------------------- Several alternatives were provided for Porter to continue its growth, including a focus on refining competitive advantages and improving the TCCA, expanding the destination portfolio to include additional local destinations as well as Western Canada destinations, and the possibility of joining a strategic alliance, which are very common...
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...attractiveness as a destination for foreign direct investment. It will adopt the Political Economy Analysis to discuss the benefits, risks and costs from Canadian political, economical and legal systems for FDI. It is stated that Canadian democratic systems prevent government from abusing power; market-oriented economic systems advocate innovation and property rights protection and its legal systems provide safeguards to property rights protection. Therefore, it believes that investing in Canada is a good choice. Since Canada is rich in natural resources and has rich human resources, it is recommended that Canada is appealing for firms which are doing business in the field of natural resources or high-technology. Table of Content Executive Summary 1 1. Introduction 4 2. Political Economy Analysis 5 2.1. Political System 5 2.2. Economical System 6 2.3. Legal System 8 3. Recommendation 9 4. Conclusion 9 References 10 Appendix 12 Table of Figures Figure 1 FDI Index 4 Figure 2 Protection Years 7 Figure 3 Net government debt as percent of GDP 8 1. Introduction Canada, with a population approximately 34 million people, is the second largest country in size after Russia (CIA, 2013). Canada is also one of the largest advanced economies in the world. In the respect to attracting FDI, it jumps 16 spots into 4th place (ATKearney, 2013). Figure 1 FDI Index Source: (ATKearney, 2013) The aim of this report is to assess Canadian attractiveness as a destination for foreign direct...
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...Introduction: Porter Airlines has managed to find success where many small carrier airlines have not. The company has survived predator competition from Air Canada to become a recognized brand in South Eastern Canada for the time-sensitive business traveller segment. The company has developed a loyal customer base and continues to capitalize on its strengths which include it location, ownership of the Billy Bishop Airport. Despite its success the company is currently focused on expanding its operational efforts both nationally and cross-border to the US and must consider a variety of options which can achieve this. Situational Analysis: External Environment: PESTEL: Political: Porter operates largely within Canada. Its home terminal is located in Toronto so it largely affected by the political environment in Canada, at large, but more specifically by the political environment in Ontario. The local and national political environment in Canada is relatively stable as there are no significant unrests in the country to impact the operations of the Porter Airlines. Economic: The economic environment in Canada has also been stable in recent years. Inflation rates are currently decreasing and lower than the GDP growth rate of 2.63% . The stabilization of oil prices will lead to savings for companies since fuel costs are a major expense for most airlines. Tax policies are favourable for Canadian corporations. However, the Canadian dollar has been experiencing recent instability...
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...| | |Strategic Crisis Management | |Culinary Tourism for Unique Positioning of Ontario in a Global Marketplace | | | | | | | | | | | | | Table of Contents | ...
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...MGT 4315*2 Team 4 Strategic Profile and Case Analysis Purpose In the airline industry competitors have to work hard to maintain market share and even more to increase their share. Southwest Airlines has become the market share leader in terms of passengers carried with the simple strategy: “low-cost/low-price/no-frills.” They have done an excellent job in implementing and executing their strategy elements. Some of the most crucial executions in the Southwest strategy are their point-to-point scheduling of flights, customer service and customer satisfaction, and appreciation of employee involvement for continuous company improvement. Although many other airlines can implement the same strategic elements as Southwest has, they would still be behind the times since Southwest has been working efficiently from inception. Throughout this analysis of their performance, one may conform his or her own opinion on how to grade Southwest with the information provided. Alternative strategic suggestions will be evaluated with a preferred alternative choice that could improve the Southwest image and performance. Situation Analysis General Environmental Analysis Until the Airline Deregulation Act of 1978, the government had control over airline fares, routes, and market entry. But since Southwest's initial plan was to fly only intrastate routes, they did not have to come under the regulation of the Civil Aeronautics Board. Southwest did, however, encounter some legal...
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...Air Canada Evaluation Executive Summary Air Canada is a full service airline company with the largest market share in the Canadian market making it the largest airline in Canada and 15th in the world. I don’t recommend lending Air Canada due to: * Weak industry conditions * Poor historical performance/financial health * Risk factors assessment * Poor credit ratings Summary of Main Points The airline industry is a very volatile industry with a lot of uncertainties. Based on Porter’s five forces, companies in the airline business are faced with challenges such as threat of new entrants, high buyers power, high suppliers power, availability of substitutes, and intense competition. Historical operating results are poor. The company has been having continuing losses since 2008. Also, financially it is not healthy. Air Canada leverage ratio is very high, and obligated to significant debt due to pension fund, employees’ benefit, and orders of new crafts. Labor strike is a major risk factor. Recently, the company was faced with several strikes that caused many flights delays or cancelations. Negotiation is taking place between the company and labor unions. Outcome this negotiation might result in higher labor cost preventing the company from enhancing its cost structure. According to S&P, Air Canada credit rating is B-, which is a non-investment grade. Also, Moody’s downgraded the company from B3 to Caa1 due to its debt obligation and high...
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...Sustainable Tourism in Canada Content 1. Canadian Tourism Industry……………………………………………………..1 1.1 Canadian tourism industry introduction…………………………………...1 1.2 Canadian tourism industry structure……………………………………….1 2. Sustainable Tourism Strategy…………………………………………………...2 2.1 What is sustainable tourism policy? ..............................................................2 2.2 Reasons of the establishment of sustainable tourism policy……………….2 3. Stakeholders……………………………………………………………………...3 3.1 Federal, provincial and territorial tourism organizations………………...3 3.1.1 Non-market behaviors deployed by tourism organizations…………4 3.1.2 Market behaviors deployed by tourism organizations………………6 3.2 National Parks and Provincial Parks……………………………………….7 3.2.1 Non-market behaviors deployed by National and Provincial Parks..7 3.2.2 Market behaviors deployed by National and Provincial Parks……..8 3.3 Transportation sector (Air, Rail way, Automobile, Cruise, etc.)…………..9 3.3.1 Non-market behaviors deployed by the transportation sector…….10 3.3.2 Market behaviors deployed by the transportation sector………….11 3.4 Accommodation, food and beverage sectors………………………………12 3.4.1 Non-market behaviors deployed by accommodation, food and beverage sectors……………………………………………………..12 3.4.2 Market behaviors deployed by accommodation, food and beverage sectors………………………………………………………………...14 3.5 Travel agencies……………………………………………………………...
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...provide the best and luxurious entertainment products and services to targeted business environments in North America and the rest of the world. This plan seeks to generate a significant increase in company sales and profits from creating more contracts with businesses from Canada in a perspective of B2B customers, government alliance, government services, boarding the service-line, compared to the preceding year. The highlights of this plan are the targeted sales-revenue from managing the business relationship with other business clients. These targets are attainable through enhancing the relationship with our current clients and our market reach in the future, expanding business relationship with other business clients, teaming-up with leisure providers, and partnering with reputable international and regional suppliers and services firms to reduce competition, improve pricing, and reduce risks. Las Vegas is counted to be a complete city for any vacation, convention, and business trip. The city has 150000 rooms, 250000 resort industry employees, the resorts can host up to 19000 meetings, convention and incentive programs annually, ranging in size from 10 to over 100,000 attendees. Las Vegas has more than 10.5 million sq ft of exhibit space (Ralenkotter, 2009). This business plan was created on the basis of our market research. Data conclude the size and growth of the business market segments, business customer needs, perception, and buying behavior of each segment. We feel...
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...Group Project: Air Canada Part 1: societal environment trends 1. Fuel prices: Oil price is highly related to the cost of air industry. According to Algoe, as the oil price increase, airline will spend more on fuel cost, which will have a direct impact on the cost of operation. Even in good time fuel costs constitute roughly 10-12% of operating expense. In addition, fuel cost increases will bring bad impact on economic, which in turn result in a substantial decline in demand for air travel and air cargo. Every penny increase in the price of jet fuel costs the airline industry $180 million a year. For Air Canada, this change would decrease their profitability and company performance. SAS Group reported that the global economic climate is weak, Jet-fuel prices and capacity continue increasing in next few years. High fuel prices presented a significant challenge for the entire aviation industry. Therefore, we consider fuel price is a threat for Air Canada doing their business. Retrieved from http://saraalgoe.hubpages.com/hub/rise-in-fuel-prices-airline-industry http://www.cisionwire.com/sas/r/sas-group-interim-report-january-march-2012,c9254790 2. GDP: According to Trading Economics, the Gross Domestic Product (GDP) in Canada expanded 0.4 percent in the fourth quarter of 2011 over the previous quarter. Historically, from 1961 until 2011, Canada’s GDP Growth Rate averaged 0.8 percent reaching an all-time high of 3.3 percent in December of...
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...AND TOURISM DESTINATION PURCHASING DECISIONS ABSTRACT Place branding has become a very competitive arena. Despite the interest of researchers and practitioners, the segment of study abroad programs has received limited attention in the literature review. According to the 2008 Global Directions in Language Travel report, in 2008, in the language studies abroad travel market, more than 1.3 million students studied languages abroad. This limited attention is surprising, given that more and more students are studying abroad. Thus, the objective of this study is to investigate which country attributes are considered relevant when students choose a place for study. In addition, the study investigates whether these attributes are similar to or different from those contemplated when a country is considered as a tourist destination. The results of this study will provide educators and university administrators with some direction for developing more attractive study abroad program offers. In addition, place marketers and governments can benefit from these results with their efforts to attract more visitors to their countries since the market segment of youth pursuing an education aboard has seen steady growth in recent years. KEYWORDS: Image, Destination, Country, Attributes, Study Abroad 1. INTRODUCTION The tourism industry has experienced robust growth over the last decades. As a result, competition in the global tourism market is greater than ever before. Destinations feel compelled...
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...which should ease cash usage throughout the group and allow good entry points into new fuel hedge positions, thereby offering protection if oil spikes again. According to S&P, the top 10 U.S. carriers lost about $5 billion in 2009, after a $4 billion loss in 2008, as the benefit of lower jet fuel costs was eroded by lower airfares and falling passenger levels. Results in 2008 were impacted by record high oil prices. Airlines have cut fares in response to weakening demand, but we think recent cuts to domestic and international supply could help restore some pricing power. For 2010, S&P estimates a net profit of about $2.0 billion for the top 10 U.S. major airlines Continental Airlines, Inc. –SWOT Analysis Continental Airlines is a major U.S. air carrier engaged in the business of transporting passengers, cargo and mail. The company has a strong market presence and a robust hub system. The company would be...
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...Capstone: Strategic Management May 13th, 2008 Robert Gibson – Scott McDaniels – Jonah Nelson – David Stark Table of Contents: Strategic Profile 3 * Company Introduction Situational Analysis 4-15 * External * PEST Analysis * Porter’s 5 Forces * Bargaining Power of Suppliers * Bargaining Power of Buyers * Threat of New Entrants * Threat of Substitutes * Competitive Rivalry between Existing Players * Competitor Landscape * Alaska Airlines * Southwest Airlines * United Airlines * Air Canada * Key Success Factors * Internal 16-23 * Resources * Tangible * Intangible * Value Chain Analysis * Primary Activities * Secondary Activities * Capabilities * VRIN Testing * Core Competencies SWOT Analysis 24-25 * Strengths * Weaknesses * Opportunities * Threats Strategy Formulation 26-28 * Strategic Alternatives * Alternative Evaluation * Alternative Choice Strategic Alternative Implementation 29-31 * Action Items * Action Plan References 32 Strategic Profile: Company Introduction Alaska Air Group is made up of two principle subsidiaries Alaska Airlines and...
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... The market for health tourism is estimated to be $67 bn, growing at a rate 20% per annum. It can be divided into three broad segments: 1. Surgeries like orthopedic surgery, heart by-pass surgery, cancer therapy, eye surgery, organ transplantation. 2. Plastic surgery or cosmetic surgery. 3. Health spas, weight loss exercise centers, hot springs and holistic treatment including wellness therapies. Different countries have become preferred destination in each of these segments for medical tourist. India is a preferred destination for heart, orthopedic, eye and neurosurgeries. Eye surgery kidney dialysis and organ transplantation are among the most common treatments sought by medical tourist in Thailand and according to the Health Ministry, in 2004 the country attracted 600,000 medical tourists, who generated 20 billion baht in revenue. As a result, Asia’s medical tourism industry could generate over US$4.4 billion a year by 2012, with India, Thailand, Singapore, Malaysia and South Korea the top destinations. Tourist arrivals from the United Arab Emirates (UAE) in Malaysia alone totalled 29,606 in 2005, an increase of almost 40 per cent from the figure in 2004.Tourists from the UAE, did not require visas to enter Malaysia and were permitted to stay in the country up to three months. 2. Factors influencing Medical Tourism: a. Exorbitant costs of...
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...Khushbaj Gill Student# 500387450 UPS is a company founded by two teenagers in 1907. It started out as a simple bicycle delivery company which has now grown to be a global corporation worth millions. The success of UPS can be summed up in their motto which they strive to fulfill “The best service at low rates” The company specializes in delivery both national and international. They deliver parcels overseas, air and land. The inputs are the barcodes on the parcels which get scanned and transmitted to the computer, which contains data about the packages sender, destination etc. The processing begins when the barcode data is sent to the computer centre closest to the destination for analysis. Output in this case is after all the data is received and processed it is then transmitted to the DIAD handhelds the UPS delivery workers carry with them. With the DIAD all the information is used to help the driver take the best route to delivery considering traffic and weather conditions. The technologies used by UPS are their own computer networks that have capabilities of automatically tracking the location of each product. They also have a functioning website where you can find out everything about the company as well as track your products at every stage in the delivery process. The logistics and supply chain methods UPS uses is also sold to other companies to give them the same type of competitive advantage they hold in their market. The infrastructure within the company is...
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...Country Risk and Strategic Planning Analysis Paper University of Phoenix MGT/448 Kathryn Hayman December 19, 2011 Team C has decided to conduct a country risk analysis for the country of Mexico. The selected business venture is about laptop computers. When it comes to global business ventures there also comes a great amount of risks. In the following paragraphs is an analysis of the following risks; political, legal, and regulatory risks, exchange and repatriation of funds risks, competitive risk assessment, taxation and double taxation risks, market risks, distribution and supply chain risks, physical and environmental challenges to entering and operating in a target market, social and cultural risks, and cyber or technology risks. A description of how these risks would be managed and a summary of the strategic planning process will be explained. Mexico has a moderate political risk according to AM Bests Country risk report. Mexico ties with large, developed countries that are very strong has help them in this aspect when it comes to their political risk. NAFTA North American Fair Trade Agreement also helps in this respect since it is now one of the largest free trade areas. This agreement was established between the Unites States, Canada, and Mexico and became effective on January 1, 1994. This alliance has brought economic growth and rising standards to the citizens of these three countries. There are many advantages of NAFTA, being that it has created...
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